THE CHRONOLOGICALLY SUPERIOR: Part IV – Caution: Your Workforce and Consumer Base are Ageing
Wisdom is the sum of the reflective and reflexive understandings that settle deep in one’s soul after a long journey — a life adventure peppered with laughter, tears, fear, foolishness, joy, doubt, amazement and wonder. Pay attention to those who have traveled before you. Ask questions and listen with your whole being. Like echoes in a canyon, the lessons will continue whispering their meaning.
What follows is Part IV of a five-part essay on health and wellness for seniors.
As I begin writing this section, the US population is 312,805,052. Of these residents, 13% are 65 or older. By 2020, that percentage will jump to 16.1%, a gain of 1.2%, while those under 20 will drop by .05% and those in the 20 – 64 cohort will drop by 1.2%. And, according to the US Census Bureau, by the year 2030 (closer than you think), seniors will comprise close to 20% of the total US population.
In just 18 years, one in every five US residents will be over the age of 65.
“…As The baby boomers moved into the older age groups, beginning in 2011, the proportion aged 65–74 is projected to increase. The majority of the country’s older population is projected to be relatively young, aged 65–74, until around 2034, when all of the baby boomers will be over 70. As the baby boomers move into the oldest–old age category, the age composition of the older population shifts upward. In 2010, slightly more than 14% of the older population will be 85 and older. By 2050, that proportion is expected to increase to more than 21%. The aging of the older population is noteworthy, as those in the oldest ages often require additional care and support.” (US Census Bureau)
US CENSUS BUREAU
Are you ready? Ready as an employer? Ready as vendor? Ready as a taxpayer?
If you are an employer keep in mind the fact that as the baby boomers grow older, so does the US workforce. Three decades ago the median age of the labor force was 35 years in 2008 the median age was estimated to be 41 years. By 2030, 23% of the US labor force is projected to be ages 55 and older, compared with13% ages 55 and older in 2000. Much of this is due to the elimination of mandatory retirement age, improved medical care (living longer), elimination or reduction in pension payouts, extended age eligibility for social security benefits, and—in the case of higher income workers—erosion of 401k plans. Take a look at your workforce and ask yourself:
Am I ready for an increasing older workforce?
Great news for you. Everyone—other than those writing the checks—will benefit from an ageing population. Retirement villages, long-term care facilities, healthcare providers, wellness professionals, and the recreation industry all stand to gain from an ageing population. Vendors, take a look at your product line and ask yourself:
Am I ready for an increasing older consumer base?
Of course, that means most of us. I needn’t waste digits by re-hashing the red ink associated with funding Social Security (employee-contribution savings) and Medicare (legislated entitlement). Pick up a newspaper or turn on the television. Legions are forming at the checkout line. Each day, over 10,000 baby boomers become eligible for Medicare and Social Security. And consider this: In 1950, as Social Security ramped up, there were 16 workers per recipient. Today there are 2.9 workers per recipient, and by 2041, the Social Security Association says there will be just 2.1 workers per recipient. Taxpayer, take a look at our obligations and promises to these older Americans and ask yourself:
Are we ready … ?
I can answer the third readiness question. The answer is “No” with further comments to come in a later white paper. As for you employers and vendors, here’s my advice:
Be Aware of & Beware of …
THE CHRONOLOGICALLY SUPERIOR
Part V: Summary – So What?